KUALA LUMPUR (July 9): SRKK AI Bhd (KL:SRKKAI) nearly doubled in its first trading day on the ACE Market as the information technology services firm rode on a wave of rebounds in the sector.
The stock opened at 60 sen versus its initial public offering (IPO) price of 32 sen per share. SRKK AI climbed to as high as 61.5 sen before closing at 61 sen after more than 103 million shares changed hands. The company’s market capitalisation stood at RM173 million based on the closing price.
“Alongside our regional ambition, we will continue to strengthen our primary engine in Malaysia,” SRKK AI chief executive officer Yew Lip Sin said in his speech at the listing ceremony on Thursday. "We are targeting all-round growth."
Bursa Malaysia Technology Index rose on Thursday with more than half of the 52 stocks in the gauge posting gains.
The strong debut follows strong investor demand ahead of the listing, helping the company to buck a global downturn of stocks linked to artificial intelligence (AI). SRKK AI drew applications worth RM1.4 billion from retail investors, oversubscribing the IPO by 312 times.
Based in Klang, SRKK mainly provides consultation, project implementation and managed services to corporations, government-linked companies, resellers and other service providers in Malaysia and Singapore.
The company is a direct bill partner under the Microsoft Cloud Solution Provider programme that allows direct purchase of Microsoft cloud solutions and resale to other vendors.
The IPO raised RM20 million for SRKK AI and another RM4.16 million for more than a dozen shareholders through two private vehicles under an offer for sale of their existing shares.
SRKK AI has earmarked proceeds from the IPO for AI initiatives, including setting up a laboratory to test products and an academy offering courses related to AI, and to develop its own data analytics and business intelligence solutions with AI capabilities.
Funds raised will also go towards building an in-house security operations centre, expanding into Indonesia, as well as branding and marketing, working capital, and covering listing expenses.
TA Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.
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